**U.S.      SECURITIES AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-QSB**

| (Mark                One)                           |                                                                                                                                 |
|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                |                                                                                                                                 |
| x                                                   | Quarterly                Report Pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|                                                |                                                                                                                                 |
|                                                | **For                the Quarterly Period Ended July 31, 2007**                                                                      |
|                                                |                                                                                                                                 |
|                                                |  Or                                                                                                                             |
|                                                |                                                                                                                                 |
|  ̈                                              | lll                Transition Report Pursuant to Section 13 or 15(d) of the Eachange                Act                              |
|                                                |                                                                                                                                 |
|                                                | For                the Transition Period from                     to     .         |
|                                                |                                                                                                                                 |
| **Commission                File Number 000-21812** |

**    FRANKLIN      LAKE      RESOURCES INC.    **

| **      Nevada     **                                                                        |   | **     52-2352724      ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|
| (State                of Incorporation)                                                                                                             |   | (I.R.S.                Identification Number)                                    |
|                                                                                                                                                |   |                                                                             |
| **172                Starlite Street, South San Francisco, CA                94080**                                                                |   | **650-588-0425**                                                                 |
| (Address                of principal executive office)                                                                                              |   | (Telephone)                                                                      |
|                                                                                                                                                |   |                                                                             |
|             N/A             |
| (Former                name, address, and fiscal year,                                                                                              |
| if                changed since last report)                                                                                                        |

|   | x                Yes |   |  ̈                No |
|--------|----------------------|--------|--------------------------|

|   |  ̈                Yes |   | x                No |
|--------|---------------------------|--------|---------------------|

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**PART      I -- FINANCIAL STATEMENTS**

**FRANKLIN        LAKE RESOURCES, INC.**

|                                                                                                     |   |                    |                                     |
|----------------------------------------------------------------------------------------------------------|--------|-------------------------|------------------------------------------|
|                                                                                                     |   | July                31, |                                     |
| **ASSETS**                                                                                               |   | 2007                    |                                     |
| Current                Assets:                                                                           |   |                    |                                     |
|   Cash                                                                                         |   | $                       | 8,725                                    |   |
|   Prepaids                and                other                                             |   |                    | -                                        |   |
| Total                Current Assets                                                                      |   |                    | 8,725                                    |   |
| Fixed                Assets:                                                                             |   |                    |                                     |   |
|   Office                furniture                & equipment                               |   |                    | 30,101                                   |   |
|   Plant                equipment                                                               |   |                    | 4,700                                    |   |
|   Accumulated                depreciation                                                      |   |                    | (30,101                                  | ) |
| Total                Fixed Assets                                                                        |   |                    | 4,700                                    |   |
|                                                                                                     |   |                    |                                     |   |
| Other                Assets:                                                                             |   |                    |                                     |   |
|   Reclamation                bond-                net of estimated reclamation costs           |   |                    | 19,867                                   |   |
|   Water                Rights                                                                  |   |                    | 6,250                                    |   |
|                                                                                                     |   |                    | 26,117                                   |   |
|                                                                                                     |   |                    |                                     |   |
| Total                Assets                                                                              |   | $                       | 39,542                                   |   |
|                                                                                                     |   |                    |                                     |   |
| **LIABILITIES                & SHAREHOLDERS' EQUITY**                                                |   |                    |                                     |   |
|                                                                                                     |   |                    |                                     |   |
| Current                Liabilities:                                                                      |   |                    |                                     |   |
|   Accounts                payable                and accrued liabilities                       |   |                    | 13,753                                   |   |
|   Deferred                Gain on                Sale of Equipment                             |   |                    | 11,400                                   |   |
|   Advances                from                Stockholders                                     |   |                    | 110,250                                  |   |
| Total                Current Liabilities                                                                 |   |                    | 135,403                                  |   |
|                                                                                                     |   |                    |                                     |   |
| Total                Liabilities                                                                         |   |                    | 135,403                                  |   |
|                                                                                                     |   |                    |                                     |   |
| Stockholders'                Equity:                                                                     |   |                    |                                     |   |
|   Preferred                Stock,                $.001 par value; authorized 5,000,000 shares; |   |                    |                                          |   |
|     no                preferred shares outstanding                                   |   |                    | -                                        |   |
|   Common                Stock, $.001                par value; authorized 45,000,000 shares;   |   |                    |                                     |   |
|     18,034,745                issued and outstanding at July 31, 2007                |   |                    | 18,034                                   |   |
|   Additional                Paid-In                Capital                                     |   |                    | 32,433,730                               |   |
|   Deficit                Accumulated                during exploration stage                   |   |                    | (32,547,625                              | ) |
| Total                Stockholders' Equity                                                                |   |                    | (95,861                                  | ) |
|                                                                                                     |   |                    |                      |   |
| Total                Liabilities and Stockholders' Equity                                                |   | $                       | 39,542                                   |   |
|                                                                                                     |   |                    |                                     |   |
|                                                                                                     |   |                    |                                     |   |
|  See                accompanying notes to the financial                statements                   |

----

**FRANKLIN      LAKE RESOURCES, INC.**

|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |
|----------------------------------------------------------------------------------------|--------|------------------------------|-------------------------------------------------------|------------------------------|--------|------------------------------------------------------|--------|------------------------------|------------------------------------------------|-----------------------------|--------|
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           | Cumulative                  |   |
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           | From                Date of |   |
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           | Inception                on |   |
|                                                                                   |   | Three                Months  |                                                  | Three                Months  |   | Nine                Months                           |   | Nine                Months   |                                           | May                23, 1986 |   |
|                                                                                   |   | Ended                        |                                                  | Ended                        |   | Ended                                                |   | Ended                        |                                           | to                July 31,  |   |
|                                                                                   |   | July                31, 2007 |                                                  | July                31, 2006 |   | July                31, 2007                         |   | July                31, 2006 |                                           | 2007                        |   |
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |
| Revenues                                                                               |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |
|     Mineral                processing fees                         |   | $                            | -                                                     |                         | $      | -                                                    |   | $                            | -                                              |                        | $      | - |   | $ | 4,585 |   |
| Total                Revenue                                                           |   |                         | -                                                     |                         |   | -                                                    |   |                         | -                                              |                        |   | - |   |   | 4,585 |   |
| Expenses:                                                                              |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |   |   |   |   |   |
|     Mineral                exploration costs                       |   |                         | 41,971                                                |                         |   | 31,396                                               |   |                         | 100,167                                        |                        |   | 129,866 |   |   | 16,407,890 |   |
|     Depreciation/amortization                expenses              |   |                         | -                                                     |                         |   | 10,119                                               |   |                         | -                                              |                        |   | 30,357 |   |   | 3,720,244 |   |
|     General                and administrative                      |   |                         | 23,325                                                |                         |   | 31,047                                               |   |                         | 137,857                                        |                        |   | 102,059 |   |   | 11,297,142 |   |
|     Impairment                of                patents and        |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |   |   |   |   |   |
|       Intellectual                property               |   |                         | -                                                     |                         |   | -                                                    |   |                         | -                                              |                        |   |                           |   |   | 1,162,792 |   |
|   Total                Expenses                                              |   |                         | 65,296                                                |                         |   | 72,562                                               |   |                         | 238,024                                        |                        |   | 262,282 |   |   | 32,588,068 |   |
| Other                Income:                                                           |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |   |   |   |   |   |
|     Gain                of                sale of equipment        |   |                         | 2,631                                                 |                         |   |                                                 |   |                         | 7,893                                          |                        |   |   |   |   | 9,647 |   |
|     Precious                Metal                Sales             |   |                         |                   -                         |                         |   |                   -                        |   |                         |                  -                        |                        |   |                  - |   |   | 26,211 |   |
| Net                Loss                                                                |   |                         | (62,665                                               | )                            |   | (72,562                                              | )      |                         | (230,131                                       | )                           |   | (262,282 | ) |   | (32,547,625 | ) |
| Weighted                Average Shares                                                 |   |                    |                                        |                         |   |                        |   |                         |                       |                        |   |          |   |   |   |   |
|   Common                Stock                Outstanding                     |   |                         | 18,034,745                                            |                         |   | 16,859,725                                           |   |                         | 17,834,745                                     |                        |   | 15,494,544 |   |   |   |   |
| Net                Loss Per Common Share                                               |   |                         |                         |                         |   |                                       |   |                         |                            |                        |   |    |   |   |   |   |
|   (Basic                and Fully                Diluted)                    |   | $                            | (0.00                                                 | )                            | $      | (0.01                                                | )      | $                            | (0.02                                          | )                           | $      | (0.02 | ) |   |   |   |
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |   |   |   |   |   |
|                                                                                   |   |                         |                                                  |                         |   |                                                 |   |                         |                                           |                        |   |   |   |   |   |   |
|  See                accompanying notes to the financial                statements |

----

**FRANKLIN        LAKE RESOURCES, INC.**

|                                                                                               |   |                                            |     |                                           |   |                                                                   |   |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|----------|------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                                               |   |                                            |     |                                           |   | Cumulative                                                             |   |
|                                                                                               |   |  Nine                Months Ended July 31, 2007 |     | Nine                Months Ended July 31, 2006 |   | From                date of inception on May 23, 1986 to July 31, 2007 |   |
| Cash                Flows used in Operating Activities:                                            |   |                                            |     |                                           |   |                                                                   |   |
| Net                Loss                                                                            |   | $                                                    | (230,131 | )                                              | $      | (262,282                                                               | )      | $ | (32,547,625 | ) |
| Adjustments                to reconcile net loss to net cash provided by operations                |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|   Amortization                /                depreciation                              |   |                                                 | -        |                                           |   | 30,357                                                                 |   |   | 3,720,244 |   |
|   Proceeds-                net book                value of equipment licenses,          |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|    properties                sold/ abandoned                                        |   |                                                 |     |                                           |   |                                                                   |   |   | 2,621,265 |   |
|   Gain                on sale of                plant equipment                          |   |                                                 | (7,893   | )                                              |   |                                                                   |   |   | (9,647 | ) |
|   Impairment                of                patents and intellectual property          |   |                                                 | -        |                                           |   |                                                                   |   |   | 1,162,792 |   |
|   Stock                based                compensation                                 |   |                                                 | 56,650   |                                           |   |                                                                   |   |   | 402,475 |   |
|   Common                stock issued                for compensation, rent and expenses  |   |                                                 | -        |                                           |   | 65,250                                                                 |   |   | 839,823 |   |
| Changes                in Operating Assets and Liabilities:                                        |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|   (Increase)                decrease                in prepaid expenses and other        |   |                                                 | -        |                                           |   | (6,542                                                                 | )      |   | - |   |
|   (Increase)                decrease                in advances from officer/shareholder |   |                                                 | 110,250  |                                           |   |                                                                   |   |   | 110,250 |   |
|   Increase                (refund)                of reclamation bond outstanding        |   |                                                 |     |                                           |   | -                                                                      |   |   | (19,867 | ) |
| Increase                ( decrease) in accounts payable and accrued liabilities                    |   |                                                 | (15,143  | )                                              |   | 2,308                                                                  |   |   | 13,753 |   |
|       Cash                Flows used in Operating Activities         |   |                                                 | (86,267  | )                                              |   | (170,909                                                               | )      |   | (23,706,537 | ) |
| Cash                Flows from Investing Activities:                                               |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|   Purchases                of plant                & equipment                       |   |                                                 | (4,700   | )                                              |   | (2,000                                                                 | )      |   | (884,779 | ) |
|   Sale                of plant                equipment                                  |   |                                                 |     |                                           |   |                                                                   |   |   | 50,000 |   |
|   Acquisition                of                water rights                              |   |                                                 |     |                                           |   |                                                                   |   |   | (25,000 | ) |
|   Disposal                of water                rights                                 |   |                                                 | 18,750   |                                           |   |                                                                   |   |   | 18,750 |   |
|   Acquisition                of                mineral properties                        |   |                                                 | -        |                                           |   | -                                                                      |   |   | (2,152,077 | ) |
|       Cash                Flows Provided by Investing Activities     |   |                                                 | 14,050   |                                           |   | (2,000                                                                 | )      |   | (2,993,106 | ) |
| Cash                Flows from Financing Activities:                                               |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|   Common                stock issued                for cash                             |   |                                                 | 25,000   |                                           |   | 151,200                                                                |   |   | 23,991,611 |   |
|   Loan                proceeds                                                           |   |                                                 | -        |                                           |   | -                                                                      |   |   | 2,202,407 |   |
|   Advances                (repayments) from officers/directors/affiliates                |   |                                                 | 20,000   |                                           |   | 20,000                                                                 |   |   | 514,350 |   |
|       Cash                Flows from Financing Activities            |   |                                                 | 45,000   |                                           |   | 171,200                                                                |   |   | 26,708,368 |   |
|    Net                Increase (Decrease) in Cash                                   |   |                                                 | (27,217  | )                                              |   | (1,709                                                                 | )      |   | 8,725 |   |
|                   Cash at Beginning of Period                                            |   |                                                 | 35,942   |                                           |   | 8,652                                                                  |   |   | - |   |
| Cash                at End of Period                                                               |   | $                                                    | 8,725    |                                           | $      | 6,943                                                                  |   | $ | 8,725 |   |
|                                                                                               |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|                                                                                               |   |                                                 |     |                                           |   |                                                                   |   |   |   |   |
|  See                accompanying notes to the financial                statements             |

----

**FRANKLIN          LAKE RESOURCES, INC.**

|                                                                                 |   |                                           |   |                                           |   | Cumulative                                                             |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                                 |   | Nine                Months Ended July 31, 2007 |   | Nine                Months Ended July 31, 2006 |   | From                date of inception on May 23, 1986 to July 31, 2007 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |
| **Supplemental                Non-Cash Financing Activities:**                       |   |                                           |   |                                           |   |                                                                   |   |
| Common                Stock issued for compensation and rent                         |   | $                                              | 65,250 |                                           | $      | 155,142                                                                |   | $ | 994,965 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
|   Common                Stock issued                for licenses           |   |                                           |   |                                           |   |                                                                   |   |   | 136,080 |   |
|   Common                Stock issued                for subsidiary         |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
| acquisition-mineral                properties & equipment                        |   |                                           |   |                                           |   |                                                                   |   |   | 2,286,576 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
|   Common                Stock issued                for mineral properties |   |                                           |   |                                           |   |                                                                   |   |   | 1,198,075 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
|   Common                Stock issued                for equipment          |   |                                           |   |                                           |   |                                                                   |   |   | 1,297,718 |   |
|   Common              Stock issued              to acquire Xenolix assets  |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
| net                of $25,000 expensed $1,162,792 Xenolix patents and                |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
| technologies                $109,978 capitalized as equipment                        |   |                                           |   |                                           |   |                                                                   |   |   | 1,272,790 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
| Cancellation                of shares issued to Xenolix                              |   |                                           |   |                                           |   |                                                                   |   |   | - |   |
|                   Equipment returned to satisfy debt , payables            |   |                                           |   |                                           |   |                                                                   |   |   | 1,299,872 |   |
|   Interest                Paid                                             |   |                                           |   |                                           |   |                                                                   |   |   | 68,851 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
|   Income                Taxes                Paid                          |   |                                           |   |                                           |   |                                                                   |   |   | 4,078 |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
|                                                                                 |   |                                           |   |                                           |   |                                                                   |   |   |   |   |
| See                accompanying notes to the financial                statements     |

----

**FRANKLIN      LAKE RESOURCES INC.**

**1.      HISTORY **

**Basis      of Presentation**

**2.      SIGNIFICANT ACCOUNTING POLICIES**

| (a)   | Accounting                Methods |
|-----------------|-----------------------------------|

----

----

**3.      COMMON STOCK**

----

**4.      RELATED PARTY TRANSACTIONS AND OPERATING LEASES**

**5.      STOCK OPTIONS & WARRANTS**

----

|                                              |   | 3                    months ended July 31, 2006 |                                            |
|---------------------------------------------------|--------|-------------------------------------------------|-------------------------------------------------|
|                                              |   |                                            |                                            |
|                                              |   |                                            |                                            |
| Net                    (loss) as reported         |   | $                                               | (                    72,562                     | ) |
| Pro-forma                    compensation expense |   | $                                               | (                    45,086                     | ) |
| Pro-forma                    net loss (restated)  |   | $                                               | (117,648                                        | ) |
| Weighted                    average               |   |                                            |                                            |   |
| Shares,                    common stock           |   |                                            |                                            |   |
| Outstanding                                       |   |                                            | 18,034,745                                      |   |
| Net                    loss per share:            |   |                                            |                                            |   |
|                                              |   |                                            |                                            |   |
| Basic                    and diluted              |   | $                                               | (0.01                                           | ) |
| Basic                    and diluted - Pro-forma  |   | $                                               | (0.01                                           | ) |
|                                              |   |                                            |                                            |   |
|                                              |   |                                            | 9                    months ended July 31, 2006 |   |
|                                              |   |                                            |                                            |   |
|                                              |   |                                            |                                            |   |
| Net                    (loss) as reported         |   | $                                               | (                    262,282                    | ) |
|                                              |   |                                            |                                            |   |
| Pro-forma                    compensation expense |   | $                                               | (                    94,042                     | ) |
| Pro-forma                    net loss (restated)  |   | $                                               | (356,324                                        | ) |
| Weighted                    average               |   |                                            |                                            |   |
| Shares,                    common stock           |   |                                            |                                            |   |
| Outstanding                                       |   |                                            | 15,494,544                                      |   |
| Net                    loss per share:            |   |                                            |                                            |   |
|                                              |   |                                            |                                            |   |
| Basic                    and diluted              |   | $                                               | (0.02                                           | ) |
| Basic                    and diluted - Pro-forma  |   | $                                               | (0.02                                           | ) |

**6.      METALS EXTRACTION AGREEMENT**

**7.      WATER RIGHTS **

**8.      GOING CONCERN **

**[END      OF NOTES TO FINANCIAL STATEMENTS]**

----

----

**PART      II -- OTHER INFORMATION**

| EXHIBITS                   |
|----------------------------|
|                       |   |
| Exhibit                No. | Description |
| 31.1                       | Rule                13a-14(a)/15d-14(a)                Certifications |
|                       |   |
| 32.1                       | Certification                under Section 906 of                the Sarbanes-Oxley Act (18 U.S.C.                1350) |

----

**SIGNATURES**

| Date:                 September 12, 2007 |   |                                                                            |
|-----------------------------------------------|--------|---------------------------------------------------------------------------------|
|                                          |   |                                                                            |
|                                          |   | **FRANKLIN                LAKE RESOURCES INC.**                                 |
|                                          |   |         (Registrant)                    |
|                                          |   |                                                                            |
|                                          |   | By                */s/                Father Gregory Ofiesh*               |
|                                          |   |   Father                Gregory                Ofiesh                 |
|                                          |   |   President                and Chief                Executive Officer |

**_____________________      **

**Form      10-QSB 043007 d2**

----